Would you ride a levitating elevator? Thyssenkrupp hopes so

Andreas Schierenbeck, CEO of ThyssenKrupp Elevators observes the viewing platform of Thyssenkrupp's elevator test tower in Rottweil, Germany. (Reuters)
Updated 07 October 2017
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Would you ride a levitating elevator? Thyssenkrupp hopes so

ROTTWEIL, Germany: Thyssenkrupp is attracting strong demand for its next-generation elevators, which operate without steel cables or ropes, it said on Friday.
Based on magnetic-levitation technology developed for high-speed trains, the MULTI elevator moves from shaft to shaft with multiple cars in each, offering the potential to revolutionise the way people move within high-rise buildings.
The German group is banking on MULTI as well as internet-connected elevators as it strives to become a technology conglomerate and shift away from its core steelmaking business, which it plans to merge with Tata Steel.
“Demand is gigantic,” Andreas Schierenbeck, chief executive of Thyssenkrupp Elevator, told Reuters.
The company plans a gradual introduction of the MULTI, he said, aiming for two or three more initial customers to follow the first order announced for a high-rise building in Berlin.
“Demand is currently much higher than what we have in mind,” Schierenbeck said in Rottweil, where Thyssenkrupp operates its MULTI test tower, adding that a much broader customer base would be targeted once the product is established on the market.
Thyssenkrupp Elevator lifted adjusted earnings before interest and tax (EBIT) by 8 percent to €860 million ($1 billion) in the financial year to Sept. 30 last year, accounting for 59 percent of the group total.
Competing with Otis, Mitsubishi Electric, Kone and Schindler, the elevators business is Thyssenkrupp's most profitable division with an adjusted EBIT margin of 11.5 percent.
Schierenbeck said the margin would grow to 12-12.2 percent for the year to Sept. 30, 2017, for which Thyssenkrupp will report results on Nov. 23. He also said it had targeted adjusted EBIT of €1 billion before 2020 and a margin of 15 percent at a later stage.
Demand in the US was good and stable, Schierenbeck said, adding that China was difficult because of “enormous” pricing pressure amid fierce competition in a shrinking market.
“We're also a little worried about Spain due to the current political situation,” Schierenbeck said, referring to the crisis sparked by Catalonia's independence referendum, which was ruled illegal by Spain's constitutional court.
Thyssenkrupp Elevator makes 30 percent of its revenue in Europe, its second-biggest sales contributor behind the Americas, but does not provide a more detailed breakdown.
— Reuters


Emirates NBD Q2 profit surges 30 pct as net interest income rises

Updated 30 min 56 sec ago
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Emirates NBD Q2 profit surges 30 pct as net interest income rises

  • Banks in the United Arab Emirates are expected to benefit this year as economic growth recovers and investment in infrastructure picks up
  • Emirates NBD expanded its international operations in May by agreeing to buy Turkey’s Denizbank from Russia’s state-owned Sberbank for $3.2 billion

DUBAI: Emirates NBD (ENBD), Dubai’s largest lender, posted a 30 percent rise in second-quarter net profit on Wednesday, boosted by a climb in net interest income and a drop in provisions to cover bad loans.

The bank made a net profit of 2.63 billion dirhams ($716.1 million) in the three months to June 30, it said in a statement, compared with 2.02 billion dirhams in the corresponding period of 2017.

That was ahead of two analysts’ forecasts. SICO Bahrain forecast the bank would make a net profit for the quarter of 2.31 billion dirhams, while EFG Hermes expected a profit of 2.14 billion dirhams.

Banks in the United Arab Emirates are expected to benefit this year as economic growth recovers and investment in infrastructure picks up ahead of Dubai’s hosting of the World Expo in 2020.

Emirates NBD, 55.6-percent owned by state fund Investment Corp, was boosted by a 20 percent rise in net interest income to 3.25 billion dirhams compared with the same period a year earlier. — Reuters

That helped offset a 3 percent dip in non-interest income to 1.10 billion dirhams as income from investment securities dropped.

Reflecting improved economic conditions, provisions for bad loans eased by 49 percent to 315 million dirhams.

With existing overseas operations in several countries including Egypt, India, Saudi Arabia, Singapore, Britain, Indonesia and China, Emirates NBD expanded its international operations in May by agreeing to buy Turkey’s Denizbank from Russia’s state-owned Sberbank for $3.2 billion.

The bank said a 21 percent increase in costs during the quarter was due to higher staff and IT costs related to its digital and technology transformation, as well as higher costs related to international branch expansion.

The bank’s loan and deposit portfolio increased marginally at the end of June. Loans rose by 4 percent to 316.4 billion dirhams, while deposits increased by 3 percent 335 billion dirhams.